US Creating Loyalty in Automotive Market Report 2020
"Consumer loyalty is prevalent in other industries, whether it’s consumers shelling out $500 for a Dyson vacuum or the diehards that only shop at Trader Joe’s. Consumer loyalty, while not…

US Creating Loyalty in Automotive Market Report 2020

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Report Summary

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Creating Loyalty in Automotive market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Loyalty is, by definition, “the quality of being loyal,” or, “a strong feeling of support or allegiance.” When analyzing brand loyalty, however, consumers may have their own definition. Mintel has sought to refine the sense of what it means to be loyal within the automotive industry.

Automotive loyalty stems from four pillars: trust, transparency, understanding and reliability (see Four Pillars of Automotive Loyalty). These are the building blocks that help consumers feel warm and fuzzy about a specific automaker. More specifically, automotive loyalty is what drives consumers to purchase from one automaker over another. For the purpose of Mintel’s analysis, consumers do not have to be loyal to every brand under an automaker’s umbrella; a consumer can be a loyal Toyota buyer, but not loyal to Lexus.

Expert analysis from a specialist in the field

Written by Hannah Keshishian, a leading analyst in the Automotive sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Consumer loyalty is prevalent in other industries, whether it’s consumers shelling out $500 for a Dyson vacuum or the diehards that only shop at Trader Joe’s. Consumer loyalty, while not always obvious, is still alive and well for some brands. And despite the many songs that have been written about one’s love for a particular truck or car, when it comes to auto brands, consumers aren’t feeling strong emotional ties to any OEM (original equipment manufacturer). Nearly 45% of consumers aren’t repurchasing their vehicles from the same auto brand. Hannah Keshishian
Automotive Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Best friends for never
          • Top Takeaways
            • What automakers want to know
              • Consumers are in need of reassurance
                • Where automakers can succeed
                  • Reliability is critical to securing brand loyalty
                    • Where do we go from here?
                    • The Market – What You Need to Know

                      • US auto sales decline in 2019
                        • Consumer confidence in the US economy is shaky
                        • Market Size

                          • 2019 auto sales end on a decline
                            • Figure 1: Total US unit sales and forecast of new cars, 2014-24
                        • Market Factors

                          • Auto tariffs continue to potentially affect auto prices
                            • Consumers are feeling confident in the US economy
                              • Figure 2: Consumer sentiment index, November 2010-November 2019
                            • Consumers’ disposable income continues to shrink
                              • Figure 3: disposable personal income, November 2019
                          • Key Players – What You Need to Know

                            • Trader Joe’s transforms loyal customers into brand advocates
                              • Ford and GM’s withdrawal from the sedan market came at a great cost
                                • Tipping point: what does the future of automotive loyalty look like?
                                • Loyalty Across Industries

                                  • Can consumers be loyal to…..a pet supply company?
                                    • How Lululemon got people amped about yoga pants
                                      • Trader Joe’s transforms loyal customers into brand advocates
                                      • What’s Happening in Auto Loyalty

                                        • Ford and Chevy push car buyers into the arms of other sedan OEMs
                                          • In an effort to meet consumer needs, automakers are decontenting vehicles and it’s not likely to work
                                          • What’s Next in Automotive Loyalty

                                            • Is the automotive market exempt from the changing landscape of consumer loyalty?
                                            • Four Pillars of Automotive Loyalty

                                                • Trust
                                                  • Transparency
                                                    • Understanding
                                                      • Reliability
                                                      • The Consumer – What You Need to Know

                                                        • Repurchasing from the same brand is a rarity
                                                          • Reliability is critical to securing repeat purchases
                                                            • Consumers don’t know if automakers care about loyalty
                                                              • Consumers have a desire to become brand loyal
                                                                • Young consumers see their vehicles as a self-reflection
                                                                • Vehicle Purchasing Overview

                                                                  • Most consumers are already thinking about their next car purchase
                                                                    • Figure 4: Car purchasing timeline, October 2019
                                                                  • Sedans and SUVs are the most-owned vehicle types
                                                                    • Figure 5: Vehicle type ownership, October 2019
                                                                  • Truth hurts: consumers aren’t loyal to your auto brand
                                                                    • Figure 6: Post-purchase loyalty, October 2019
                                                                • What Does Loyalty Look Like

                                                                  • Consumers struggle with the idea of auto brand loyalty
                                                                    • Figure 7: Consideration of auto brand loyalty, October 2019
                                                                  • Reliability sets the foundation for repeat brand purchases
                                                                    • Figure 8: repeat brand purchase drivers, October 2019
                                                                  • Familial loyalty still has some mileage
                                                                    • Figure 9: Subaru, Making Memories, May 2017
                                                                    • Figure 10: Personal relationships as repeat purchase drivers, October 2019
                                                                • What’s Costing OEMs Loyalty

                                                                  • Poor vehicle experiences can cost automakers consumer loyalty
                                                                    • Figure 11: Reasons to purchase from a different brand, October 2019
                                                                  • Consumers want to trust that their vehicle will work properly
                                                                    • Figure 12: Reasons to purchase from a different brand, October 2019
                                                                  • Consumers have a pretty fractured relationship with auto brands
                                                                    • Figure 13: Consumer perception of automakers’ concern, October 2019
                                                                • Opportunities for Creating Loyalty

                                                                  • Consumers see their cars as more than just “vehicles”
                                                                    • Figure 14: Liberty Mutual twitter campaign, December 2016
                                                                    • Figure 15: Consumer sentiment toward their personal vehicles, October 2019
                                                                  • Consumers are (still) asking for more transparency
                                                                    • Figure 16: Likelihood of preferred brand recommendation, October 2019
                                                                  • Female car buyers can see themselves becoming brand loyal
                                                                    • Figure 17: Female attitudes toward being brand loyal, October 2019
                                                                  • Men are more sentimental when it comes to their vehicles
                                                                    • Figure 18: Male sentiments toward personal vehicles, October 2019
                                                                  • Brand name carries weight among consumers
                                                                    • Figure 19: Attitudinal statements of vehicle brand perceived value, October 2019
                                                                  • Consumers would prefer to be brand loyal
                                                                    • Figure 20: attitudes toward repeat brand purchases October 2019
                                                                  • OEMs need to show how they can grow with Millennials
                                                                    • Figure 21: Lifestyle changes, by generation, October 2019
                                                                  • Vehicles serve as a form of self-expression
                                                                    • Figure 22: Vehicles as a form of self-expression, by generation, October 2019
                                                                  • Understanding young consumer needs will be key to securing loyalty
                                                                    • Figure 23: Earned loyalty through understanding, by generation, October 2019
                                                                • Appendix – Data Sources and Abbreviations

                                                                  • Data sources
                                                                    • Sales data
                                                                      • Fan chart forecast
                                                                        • Consumer survey data
                                                                          • Direct marketing creative
                                                                            • Abbreviations and terms
                                                                              • Abbreviations
                                                                                • Terms
                                                                                • Appendix – The Consumer

                                                                                    • Figure 24: Vehicle types in household, by repurchase statements, October 2019
                                                                                    • Figure 25: Brand loyalty drivers, by parental status, October 2019
                                                                                    • Figure 26: Repurchase statements driven by ads, by parental status, October 2019
                                                                                    • Figure 27: Brand hopping likelihood, by parental status, October 2019
                                                                                    • Figure 28: Brand conquesting drivers, by parental status, October 2019

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                                                                                This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.


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